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Browse some of the Urban-Act interventions from our beneficiary countries
Total Case Studies: 1
Shanghai City, Suzhou City, Jiashan County | China

ENABLING CITY CLIMATE FINANCE

Accessing climate finance for urban development can be complex. However, cities can improve their chances of securing financing by following two key steps:

Step 1: Assessing Enabling Framework Conditions

Before cities can effectively access and deploy climate finance, it is essential to understand the national and subnational conditions that either support or hinder investment. These are known as enabling framework conditions (EFCs). EFCs are essential for scaling urban climate finance as they provide regulatory clarity, strengthen institutional capacity, mitigate investment risks, and promote stakeholder engagement, creating a conducive environment for national and subnational entities to drive climate action and achieve global climate goals. 

EFCs can also be understood as the foundational conditions that enable the design, planning, and execution of effective climate action interventions, and are therefore integral across most of the climate action project value chain.

To support this process, Urban-Act and the Cities Climate Finance Leadership Alliance (CCFLA) have developed two complementary toolkits to assess both national and subnational EFCs, intended to enable better access to urban climate finance. The National and Subnational EFC Assessment Tool Workbooks, designed for use by national and subnational officials, use a standardized approach to evaluate four dimensions of EFCs: climate policy, budget and finance, climate data, and vertical and horizontal coordination. When used together, the tools can help assess EFCs, facilitate recommendations, and identify areas for improvement. 

National Assessment Toolkit

The tool’s primary target user group is national government officials, but it may also be useful to other stakeholders, including local governments and their partners, city networks, and NGOs.

Subnational Assessment Toolkit 

The tool’s primary target user group is subnational government officials, but it may also be useful to other stakeholders, including local implementers (e.g., project preparation facilities), city networks, NGOs, and national officials. 

Already, EFC assessments have been successfully conducted in Indonesia, India, and Fiji. Please refer to the completed assessments below for inspiration and cross-learning from their experiences. 


Step 2: Project Preparation and Financing through Matchmaking

Once national and subnational enabling environments are understood, cities then need to turn climate action ideas and project proposals into market-ready projects. This is where matchmaking comes in.

Matchmaking in this context refers to helping cities prepare bankable climate action projects ready for implementation finance by connecting them with project preparation facilities (PPFs). PPFs support cities in developing project concepts, conducting (pre-)feasibility studies, and accessing later-stage financing—whether from domestic budgets or international financial institutions. This process ensures that projects meet investor criteria while remaining aligned with national policy frameworks, overcoming existing barriers and enabling climate finance at the city level.

In the climate action project value chain, project preparation and matchmaking act as the bridge between early project definition and securing implementation finance, ensuring that promising ideas are translated into structured, bankable interventions.

Please see the below matchmaking protocol for accelerating access to climate finance for your city.